Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2021, March 6th 2021, Jakarta, Indonesia

Research Article

Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development

Download297 downloads
  • @INPROCEEDINGS{10.4108/eai.6-3-2021.2305978,
        author={Yosua Lusopatia Tobing and Evita Isretno Israhadi},
        title={Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development},
        proceedings={Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE  2021, March 6th 2021, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2021},
        month={5},
        keywords={tariff setting; investment guarantee; public to private cooperation; infrastructure development},
        doi={10.4108/eai.6-3-2021.2305978}
    }
    
  • Yosua Lusopatia Tobing
    Evita Isretno Israhadi
    Year: 2021
    Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development
    ICLSSEE
    EAI
    DOI: 10.4108/eai.6-3-2021.2305978
Yosua Lusopatia Tobing1,*, Evita Isretno Israhadi1
  • 1: Borobudur University, Jl. Kalimalang No. 1, Jakarta
*Contact email: Josh.tobing@gmail.com

Abstract

The construction of infrastructure facilities has traditionally been the government's obligation as the administrator of the state. However, the government may have a limited budget and resources to perform such duties. The government then involves private sectors in building, financing, and managing infrastructure development needs to do. Investors will get a return on their investment through tariffs on the use of such infrastructure facilities. This paper discusses the importance of certainty to the contractual tariff increase for investors while on the other hand, the government needs to consider the public's affordability at the new tariff. The research uses the Indonesian infrastructure project, specifically toll road concession, as a case study.